Sending money abroad: LRS limit and TCS from 1 April 2026
Resident individuals can send up to USD 2,50,000 abroad each financial year under the Liberalised Remittance Scheme. From 1 April 2026, TCS is 2% for education or medical and 20% for other purposes, on amounts above ₹10 lakh.
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The LRS limit
Resident individuals, including minors, can remit up to USD 2,50,000 per financial year (April–March) through a bank. This covers current account purposes (travel, studies, medical treatment, gifts, supporting relatives) and capital account purposes (foreign shares and mutual funds, property abroad, a foreign bank account). Going above the limit needs RBI permission, except for studies or medical treatment, where the bank can allow more based on the institution’s or doctor’s estimate.
You give your PAN and sign Form A2, which states the purpose and confirms the money is yours.
Not allowed under LRS: forex or margin trading abroad, lottery tickets, and capital remittances to countries FATF lists as non-cooperative.
TCS on remittances (from 1 April 2026)
Under section 394 of the Income-tax Act 2025, as amended by the Finance Act 2026:
| Purpose | TCS |
|---|---|
| Paid out of an education loan from a specified institution | Nil |
| Education or medical treatment | 2% on the amount above ₹10 lakh in a tax year |
| Any other purpose (investment, gifts, etc.) | 20% on the amount above ₹10 lakh |
| Overseas tour package | 2% on any amount |
TCS is not an extra tax. You claim it as credit against your income tax or get it back as a refund when you file your return. Non-filers may pay a higher rate.
In FY 2025-26 the rates were 5% for education or medical and 20% for other purposes above ₹10 lakh. Tour packages were 5% up to ₹10 lakh and 20% above.
Money coming into India
Inward remittances through banks are freely allowed. For income tax, gifts from non-relatives above ₹50,000 in total in a year are taxable. Gifts from relatives, on marriage, or by will are exempt.
Paying a non-resident
Payments to non-residents may need TDS. You file Form 15CA, and for taxable payments over ₹5 lakh a CA’s Form 15CB certificate. How these forms map to the 2025 Act: Needs review.
Leftover foreign currency
Unspent foreign exchange must be sold back within 180 days. You may keep up to USD 2,000 in notes and coins.
Sources
- RBI: Master Direction, Liberalised Remittance Scheme
- RBI: LRS FAQ
- RBI: Forex FAQ (December 2025)
- Income Tax Department: Section 394, Income-tax Act 2025 (TCS)
- Income Tax Department: Section 56 (gifts)
- Income Tax e-filing: Form 15CA user manual
Last verified: 4 Nov 2026